GUATEMALA (TVBS News) — The Guatemalan Exporters Association (Agexport) announced Thursday (May 23) that China has banned the entry of coffee and cardamom from Guatemala.
This move comes amid escalating tensions between the two nations following a video conference between the Guatemalan President and President Lai Ching-te and the attendance of Guatemala's foreign minister at Taiwan's presidential inauguration on May 20.
The Ministry of Foreign Affairs of the People's Republic of China condemned the interactions, stating they were detrimental to the trade relations between Guatemala and China.
Chinese Foreign Ministry spokesperson Wang Wen-bin emphasized that China has no diplomatic relations with Guatemala and reiterated the one-China principle as the fundamental premise for cooperation with all countries.
Despite these political tensions, the Guatemalan Ministry of Foreign Affairs and Ministry of Economic Affairs have not commented on the situation.
Trade between China and Guatemala has been significantly imbalanced, with China running a substantial trade surplus. According to Agexport, in 2023, China exported approximately US＄5.58 billion of goods to Guatemala, including machinery, vehicles, electronics, raw materials, and manufactured goods.
Conversely, Guatemala's exports to China amounted to US＄82 million in 2023, with coffee, nickel, iron, steel, cardamom, copper, apparel, precious metals, aluminum, and timber as the primary products.
Data from the General Administration of Customs of the People's Republic of China shows that from January to April 2014, bilateral trade totaled US＄1.47 billion, with China's exports increasing by 4.1% to US＄1.44 billion. Compared to the same period in 2023, imports from Guatemala plummeted by 80.1% to just US＄33.04 million.
This trade dispute underscores the broader geopolitical tensions affecting international trade relations, particularly those involving Taiwan. As the situation develops, the impact on Guatemala's export sector and the potential for further diplomatic fallout remains to be seen.
